HB 1476 — An Act providing for reporting requirements for qualifying crypto-asset mining operations and for an impact study; and imposing duties on the Department of Environmental Protection.

PRIOR PRINTER'S NO.NOS.

16621662, 2129 PRINTER'S NO.

21292435 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1476 2023 INTRODUCED BY VITALI, WAXMAN, MADDEN, SANCHEZ, HILL-EVANS, GREENSTEELE, ANDKHAN, KRAJEWSKI,BRENNAN, JUNEHOWARD, 21,PIELLI, 2023LLI, HOHENSTEIN, SALISBURY, ASGREEN REPORTEDAND FROMKRAJEWSKI, COMMITTEEJUNE ON21, ENVIRONMENTAL2023 RESOURCESAS ANDAMENDED OCTOBERON 16,SECOND 2023CONSIDERATION, HOUSE OF REPRESENTATIVES, ASDECEMBER AMENDED,12, 2023 AN ACT Providing for areporting moratoriumrequirements onfor electric generating facility that <-- provides, in whole or in part, behind-the-meter electric energy consumed or utilized by a qualifying crypto-asset mining operationoperations REPORTING REQUIREMENTS FOR QUALIFYING <-- CRYPTO-ASSET MINING OPERATIONS and for an impact study;

(3) This Commonwealth is a major emitter of greenhouse gases that contribute to climate change, the vast majority of which<-- which, APPROXIMATELY 55%, are related to the production and <-- consumption of energy.energy TRANSPORTATION AND INDUSTRIAL SECTORS.

<-- (4) This Commonwealth is committed to reducing greenhouse gas emissions within the Commonwealth in order to help combat climate change, with goals of reducing greenhouse gas emissions by 26% from 2005 levels by 2025 and further reducing greenhouse gas emissions by 80% from 2005 levels by 2050 under Executive Order 2019-01.

The following words and phrases when used in this act shall 20230HB1476PN2129 - 2 - have the meanings given to them in this section unless the context clearly indicates otherwise:

20230HB1476PN2435 - 2 - "Blockchain." A distributed ledger technology in which:

20230HB1476PN2129 - 3 - "Scope 1 emissions." Greenhouse gas emissions directly from sources that are operated, controlled or owned by an individual 20230HB1476PN2435 - 3 - or entity performing a qualifying crypto-asset mining operation.

Moratorium.Reporting requirements for qualifying crypto-asset mining operations.

<-- Notwithstanding any other provision of law, for two years following the effective date of this section, the department may not approve an application for a new permit or renew an existing permit under the act of January 9, 1959 (P.L.2119, No.787), known as the Air Pollution Control Act, including, but not limited to, section 6.1 of the Air Pollution Control Act, for an electric generating facility that provides, in whole or in part, behind-the-meter electric energy consumed or utilized by a qualifying crypto-asset mining operation.

Section 5 4.

Reporting requirements for qualifying crypto-asset <-- mining operations.

(3) the amount of electric energy consumed by the 20230HB1476PN2129 - 4 - qualifying crypto-asset mining operation, including the time of electricity usage;

and 20230HB1476PN2435 - 4 - (7) any other information deemed necessary by the department.

Section 6 5.

<-- (a) Report.--No later than one year following the effective date of this subsection, the department, in consultation with the Pennsylvania Public Utility Commission, shall issue a report, including all of the following information:

20230HB1476PN2129 - 5 - (1) The number and location of any existing or planned qualifying crypto-asset mining operations, including which operations are located in an environmental justice area.

20230HB1476PN2435 - 5 - (4) The potential impacts of electric energy consumption by qualifying crypto-asset mining operations, including by prolonging the use of fossil fuel generators, on the ability of this Commonwealth to achieve stated greenhouse gas emission reduction goals.

(8) The amount of electric energy consumed by each qualifying crypto-asset mining operation, including the time of use of electricity and the potential grid stress posed by 20230HB1476PN2129 - 6 - the power load of the qualifying crypto-asset mining operation.

(12) An analysis of potential rate-design measures that could be implemented by State and local regulators to reduce the energy consumption and dependence on fossil fuel energy 20230HB1476PN2435 - 6 - sources of qualifying crypto-asset mining operations.

Section 7 6.

<-- The department and the Environmental Quality Board shall promulgate regulations as necessary to implement the provisions of this act.

Section 8 7.

<-- This act shall take effect immediately.

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